After almost two months since President Joe Biden signed an executive order to forgive some student loans for many Americans, the U.S. Department of Education has officially launched a website accepting applications for student loan forgiveness. Biden announced the action on August 24, 2022.
Under the program, those with federally guaranteed student loans can have up to $20,000 of their eligible student loan debts forgiven, depending upon certain qualifying factors. Those who had also received Pell Grants, which are for lower-income students, can have up to $20,000 forgiven, while non-Pell Grant recipients can have up to $10,000 in debts forgiven.
However, in both cases, the borrowers are only eligible if they have individual income under $125,000 (or $250,000 for married couples).
The website for applying for student loan forgiveness is: https://studentaid.gov/debt-relief/application
The Biden administration had made the effort part of its campaign, citing the rising costs of higher education. The order also cuts undergraduate student loan payments in half, based on a new income-based repayment plan. The plan caps monthly payments for these loans at five percent “of a borrower’s discretionary income.”